Tuesday, July 7, 2009

Time to short?

I'm looking at some short ETF's, shortable stocks and possibly puts as almost all technical signals point to a more prolonged pullback period. Sources I trust who are knowledgeable respectable traders believe we should see some sort of rally probably occuring in early trading as a response to today's sell-off but ultimately the uptrend will prove short-lived and just a short pause before we continue downward. A lot of stocks are showing the same head and shoulders pattern while their inverses are just that an inverse head and shoulder situation.

I'm going to probably take on maybe 1 or 2 short ETF positions tomorrow in the morning especially if we rally. The ETF's I will be closely monitoring are: SH, DOG, SBB, PSQ, MYY, RWM, SEF
Posted by at

3 comments:

  1. blackmarktJuly 8, 2009 at 7:59 AM

    I took on 2 Short Positions: SH & SRS.

    - I bought 100 shares of SRS at $21.6 with a stop of $20

    - I bought 50 shares of SH at $68.06 with a stop of $67

    The S&P looks like it's intraday resistance is around 886.1.

    I'm sure everyone read the commentary about the head and shoulders breakdown and with earnings around the corner and market looking tired...

    I don't think I'll be shorting the financials since they look like they are going to have another outstanding quarter maybe one of their best given that the government is giving them virtually free money to lend out. The wild card will be how negatively their liabilities (i.e. credit card & commercial loans defaults) affect their balance sheets...

    ReplyDelete
  2. UnknownJuly 8, 2009 at 10:02 AM

    I am just sitting on my hands.

    ReplyDelete
  3. blackmarktJuly 8, 2009 at 12:56 PM

    Okay now I was 5% on my SRS and about 2% on SH most of the day and coming into the final hour I was expecting another charge from the bulls but ultimately expected it to fail and the sell-off to continue BUT it looks like the bulls had enough energy to mount a final push into closing to push the major indexes into positive territory. Long story short I netted a small/flat gain releasing my SRS at $22.15 and my SH around $68.50... I didn't feel comfortable holding these shorts overnight with earnings kicking off tonight with AA. Time to get ready for earnings plays.

    ReplyDelete

Subscribe to: Post Comments (Atom)